The commercial real estate market in Calgary is teeming with opportunities in 2024. The city is well-positioned to continue being a popular destination for entrepreneurs and investors due to its strategic advantages, affordability, and economic resiliency. Calgary offers unmatched potential whether you're searching for a contemporary office building, retail real estate, or an industrial warehouse.
Opportunities in the city's commercial real estate market will inevitably increase as it develops and grows. Don't pass up the opportunity to contribute to Calgary's development as a major international economic hub.
One of the most promising markets for commercial real estate in 2024 is Calgary, the energetic center of Alberta. Calgary is drawing in investors, business owners, and real estate developers due to its advantageous location, strong economic growth, and rising demand for office buildings, warehouses, and retail centers. Here are some of the reasons the city is making news this year in the commercial real estate market.
1. Economic Resilience and Growth
One of Canada's most diverse economies is found in Calgary. The city, which has long been recognized as a center for energy, has effectively expanded its economic foundation to encompass manufacturing, technology, agriculture, and banking. In addition to ensuring economic stability, this diversification draws in companies seeking a safe environment in which to launch or grow.
Rising oil prices and growing investments in renewable energy projects are expected to boost Calgary's GDP growth in 2024, which is expected to be robust. Businesses are fighting for contemporary office spaces and industrial assets as a result of the economic vitality that has produced a favorable environment for commercial real estate.
2. Affordable Real Estate Prices
Commercial real estate in Calgary is far less expensive per square foot than in places like Toronto and Vancouver. Due to its affordability, Calgary has caught the interest of both domestic and foreign investors who view it as a market with significant potential and high rates of return on investment. Small and medium-sized businesses (SMEs) can also expand without going over budget thanks to lower expenditures.
3. Thriving Tech Sector
The growing tech sector in Calgary is revolutionizing the city's commercial real estate market. Calgary is rapidly becoming as a tech powerhouse, with over $500 million in venture capital investments expected to flood into the city in 2023. The need for coworking spaces and flexible office spaces is being driven by both established tech companies and startups.
The city's emphasis on innovation is reinforced by a highly qualified workforce and programs like the Calgary Innovation Centre. These elements are propelling the construction of state-of-the-art commercial buildings intended to meet the demands of tech firms.
4. Strategic Location and Infrastructure
Calgary holds an unrivaled position as a logistical center. The city provides easy access to both domestic and foreign markets due to its location at the intersection of important transportation networks. It is an ideal site for distribution and warehousing facilities due to its close proximity to the US border and easy access to the Asia-Pacific area.
Additionally, companies that depend on quick and dependable transit are supported by the city's infrastructure, which includes the Calgary International Airport and effective road networks.
5. Business-Friendly Policies
To entice companies to Calgary, the Alberta government has launched a number of programs. Calgary has developed into a city that welcomes entrepreneurs thanks to its low corporation tax rates, startup incentives, and foreign investment incentives. These regulations increase demand for commercial premises in addition to promoting business expansion.
Additionally, developers find it simpler to start and finish commercial real estate developments because to the city's simplified permit procedures and encouraging municipal laws.
6. Urban Transformation and Mixed-Use Developments
With an emphasis on livability and sustainability, Calgary is seeing a spectacular urban makeover. Developers are making more and more investments in mixed-use buildings that include residential, commercial, and retail areas. Because they provide accessible, all-in-one environments, these integrated projects are especially enticing to companies trying to recruit top talent.
Projects like the East Village regeneration and Calgary's Beltline district, for example, are raising the bar for urban development and increasing the city's allure.
7. Growing Population and Talent Pool
Migration and a high standard of living are expected to fuel Calgary's population growth in the upcoming years. The need for stores, eateries, and entertainment venues is increased by the newcomers, which benefits the retail industry. A larger workforce is another benefit of a growing population, which draws businesses from a variety of industries to establish operations in the city.
8. Focus on Sustainability
The commercial real estate market in Calgary is changing as a result of the city's dedication to sustainable practices and green construction. In keeping with worldwide ESG (Environmental, Social, and Governance) trends, the city is making investments in renewable energy and energy-efficient building projects. Tenants and investors who care about the environment will find this emphasis on sustainability especially appealing.
9. Robust Industrial Real Estate Growth
The growth of e-commerce and the requirement for expansive logistics and distribution facilities are driving an unparalleled demand for industrial real estate in Calgary. Calgary is the ideal location for the strategically placed warehouses that businesses are increasingly seeking to support their supply networks.
With new construction, the city's industrial parks—like Shepard Industrial and the Southeast Calgary Industrial Area—are flourishing. Furthermore, Calgary's accessibility by train and air increases its allure for businesses operating in the manufacturing, retail, and logistics sectors.
10. Increasing Demand for Retail Spaces
In 2024, Calgary's retail areas are seeing a renaissance as the city's population increases and customer confidence rises. Successful areas of Calgary, such as the Beltline and 17th Avenue, have developed into retail magnets that draw boutiques, luxury brands, and a variety of culinary alternatives.
Retail areas are being incorporated into urban centers through mixed-use developments, which provide companies with a consistent flow of foot traffic from surrounding residential and office buildings. The retail real estate market is becoming a profitable prospect for both developers and investors, especially when combined with the flood of tourists and a strong local economy.